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Strategic Management of AirAsia
Added on 2023-06-11
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Leadership and Motivation Theories Assignment 2022 lg ...
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Case Study AirAsia Business Challenge
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In December 2001, just a few months after the terrorist attacks on New York and Washington left the international airline industry reeling, a new Malaysian company called 'Tune Air' purchased a small underperforming domestic Malaysian airline known as 'AirAsia' for 1 Malaysian ringgit and the assumption of 40 million ringgit in debt. Within 11 months of acquiring the company, Tune Air had fully repaid this debt and by January 2003 the company was operating six aircraft domestically. In 2006, AirAsia boasted a fleet of 35 Boeing 737-300 aircraft and eight Airbus 320 aircraft with orders for 100 more A320s (Vietnam News 2006) and was forecast to carry nine million passengers to 52 domestic and international destinations. AirAsia's meteoric rise is the result of the confluence of opportunity and skillful application of the low-cost Carrier (LCC) aviation business model. This model, which has its origins in the success of Southwest Airlines (see Gittell 2003) and Michael O'Leary's 'Ryanair', has been implemented around the world and consists of a number of common elements such as reduced inflight service, point to point travel, high aircraft utilization, single fleet type, ticketless passenger reservation systems and considerable functional flexibility in staffing. In this article we trace the rise of AirAsia's success and the nuances of the low-cost aviation model it has pursued. We draw upon established theory from the fields of strategy and strategic human resource management to explain AirAsia's minimalist approach to human resource management. In particular, we apply Porter's (1985) well known theory of generic business strategies and Schuler and Jackson's model linking HR practices to competitive strategy, to argue that the airline's successful quest for market cost leadership has been supported by a strict focus on Legge's (1995) 'hard' variety of HRM. It is further argued that while a number of the components of the Southwest Airlines model are evident, there are also significant differences in AirAsia's management of human resources. In particular, it is argued that the airline has adopted a far stronger cost minimization and 'hard' HRM path that is closer to Ryanair's model, which has proved highly successful for the airline in South East Asia.
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of 175 new aircraft for its AirAsia-X long-haul services. He could not resist the concern over the aircraft deferment to Thailand and Indonesia in 2011 because of the relocation of the low-cost carrier terminal in Sepang before AirAsia was forced to move to KLIA2. Such a situation would surely increase its operating costs exponentially. He also knew he was facing an economic downturn and the high competition, particularly for his AirAsia-X business. Major rivals of AirAsia-X in the region were Singapore Tiger Airways, Cebu Pacific Air of the Philippines and a global competitor was EasyJet in Europe had just launched aggressive campaigns and promotions which would affect its long-haul business. He was certain that the company would achieve his dream to spread its wings all over the world. However, he realized that the company's operating costs and competition with other airliners that joined the club of no-frills airlines based on a national and international level presently had escalated. He knew he had to act now. If you were Tony Fernandez, what would you do in this scenario was a question that needs an answer? This is an issue of strategic choice of divesting or integration as the strategic options are limited in the short as well as long run. The AirAsia case study has the main objective of sharing impact of the covid-19 pandemic devastating impact on the airliners. It is a significant study in terms of impact on economy, tourism and hospitality industry in general and Malaysia in particular.
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They have a vast network of operations around the world, flying domestically and internationally. Their 5 main operational hubs are Singapore, Indonesia, Japan, Malaysia, and Thailand. In the AirAsia case study, we shall decode AirAsia's marketing strategy, marketing mix, SWOT analysis, social media presence, and also analyze its competitors.
Case Study -Air Asia: From Regional to Global. August 2021 The International Journal of Business and Management Research. KHALIQ Ahmad Dr. Khaliq. In February 2009, Tony Fernandez, the founder of ...
We Will Write a Custom Case Study Specifically For You For Only $13.90/page! Secondly, the management team is also very good in their strategic formulation and execution. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe.
Abstract. During the world pandemic, AirAsia reported an annual loss of RM5.9 billion ($1.4 billion) in 2020. The uncertainty of the Covid-19 outbreaks, travel restrictions, and border controls ...
Bought for 1 Malaysian ringgit (~ 0.25$) by CEO Tony Fernandes , the company, headquartered in Malaysia, has grown to become the biggest Asian airline outside China. At AirAsia, the sky's the limit (excuse the pun) and, in an effort to disrupt the online travel space, its aim to become a powerhouse of travel tech and join the super app race.
AirAsia Airline As the best low-cost passenger. AirAsia connects visitors and destinations via 293 routes; 90 of them were categorized ... In each strategic area, including flexibility, product delivery, quality, and cost reduction, ... The focus of a case study is the specification of a case in an event, whether it includes an individual, a ...
This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia's leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline ...
AirAsia was the first successful low cost airline in the Southeast Asian region. This case study discusses the factors that contributed to AirAsia's success. It studies the influence of culture and leadership at AirAsia, the factors contributing to its operational efficiency and the strategic orientation of the airline. It also discusses the threats to the long-term success of the airline with ...
The purpose of this study is to focus on the cost-leadership competitive strategy applied by low-cost carriers (LCCs) in SE Asia airlines and explore the elements that affect the competing ...
Company Pro le. AirAsia, the leading and largest low-cost carrier in Asia, services an extensive network of 85 destinations. Within 10 years of operations, it has carried over 152 million guests and grown its eet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with ...
Information Technology (IT) is one of the major enablers of AirAsia's successful low cost business model. AirAsia had demonstrated the strategic value of information and communications technology (ICT) in improving competitiveness with a very high majority of its passengers making their bookings online. AirAsia was also the world's first airline to allow SMS (short messaging Continue reading
The author chooses AirAsia as the study object for learning low-cost leadership that developed by Michael E. Porter. The main idea of the paper is about the industry analysis applied to generic strategies thus generate competitive advantages. AirAsia Berhad (MYX: 5099) is a Malaysian-based low-cost airline.
9 AirAsia has a very strong management team with strong 0.03 2 0.06 2 0.06 links with governments and airline industry leaders -This is partly contribute by the diverse background of the executive management team that consist of industry experts and ex-top government officials WEAKNESSESS 1 AirAsia receives a lot complaint from customers on ...
The Strategic Management of Airasia Tune Group | PDF | Airlines | Low Cost Carrier. the-strategic-management-of-airasia-tune-group - Free download as PDF File (.pdf), Text File (.txt) or read online for free.
Discover AirAsia's strategic management, business and functional level strategies, leadership impact, and SMART business goals in this case study. ... 23 Pages 5754 Words 374 Views Added on 2023-06-11. About This Document. This case study discusses the strategic management of AirAsia, including external and internal analysis, business level and ...
The AirAsia case study has the main objective of sharing impact of the covid-19 pandemic devastating impact on the airliners. It is a significant study in terms of impact on economy, tourism and hospitality industry in general and Malaysia in particular. Download Free PDF. View PDF. Marketing - AirAsia (2014) Kasyfi Mohamad Nor. Download Free PDF.
strategic data collecting easier, and then use business analytical approaches to develop a business model in light of the Covid-19epidemic. AirAsia will be able to construct risk profiles
Executive Summary. The report "The Strategic Management Of AirAsia: Value Chain Analysis" is study on the strategic management of "AirAsia and Tune Group". AirAsia is well known for low-cost airline and one of the market leaders in the airline industry. To maintain the brand which is outstanding as low-cost carrier service and to be ...
Air Asia's business strategy is centered on cost leadership and targets specific markets which are price sensitive customers (including 1 st time fliers) who needing the short haul flights. According to Porter's generic strategies (1985), cost leadership is one of them. Air Asia has to offer the lowest possible fare amongst all airlines in ...
Order custom essay AirAsia Case Study Report with free plagiarism report. Strategic management has played a key role in the success of many business organisations in the world including airlines and AirAsia is no exception. Commencing in 1996, within fifteen years, AirAsia managed to expand its operations into another ten countries.
Abstract and Figures. Based on the Brand Assets Management model by Scott M. Davis, this paper analysed the brand vison, brand picture and brand strategy of AirAsia. The results show the clarity ...
Table of contents. AirAsia was launched in 2002 by Tony Fernandes, at the time a pioneer of low-cost flights in Asia. At first, the company operated three Boeing 737s. In 2004, after a very successful public offering, AirAsia was listed on the Malaysian Stock Exchange and from there grew rapidly. As of 2011, the AirAsia Group has 93 aircraft ...